Chapter 7 Bankruptcy
Chapter 7 bankruptcy is a process provided for under United States federal bankruptcy law by which you are entitled to a fresh start.
Chapter 7 bankruptcy may eliminate most kinds of unsecured debt. Some examples of an unsecured debt are credit cards; medical bills; most personal loans; judgments resulting from car accidents; and deficiencies on repossessed vehicles.
Common Questions
In addition to getting rid of your debt, you typically can keep all of your property. As long as your car and mortgage payments are current, and there is no significant equity in your property, there should be no problem making the arrangements for you to reaffirm the debt. Keep your home, keep your car, keep your personal belongings - but eliminate all of your debt; that is our goal. We may be able to use Chapter 7 to provide you with many benefits.
Stop Creditor Harrassment
If you have creditors contacting you at work, calling and harassing your family, friends and neighbors, or calling you at all hours, you can put an end to it immediately simply by hiring an attorney to represent you. Upon retaining our services, we will provide you with a telephone number and contact information so that you can refer your creditors to us. We will keep the creditors off your back, and you can stop paying your creditors immediately.
Eliminate Repossession Debt
After a vehicle finance company repossesses your car they auction it to reduce their loss. You are still responsible for the balance on the car, which is called a 'deficiency balance'. We can help you eliminate your liability for the entire deficiency balance.
End Lawsuits
If you are being sued, and you own a home, we strongly urge you to contact us immediately about filing bankruptcy. A bankruptcy will stop a lawsuit immediately and prevent your creditors from placing a lien on your home or garnishing your hard-earned wages.
Stop Garnishments
Chapter 7 bankruptcy is one of the most effective ways to immediately stop a garnishment. Garnishments can diminish your hard-earned income making it nearly impossible for you to afford the basic living necessities. By filing Chapter 7 bankruptcy and stopping the garnishment, you will be able to use your income for more important necessities in life and start saving for your future.
Keep Your House, Car and Personal Belongings
Most mortgage lenders and automobile finance companies are usually more than happy to keep accepting your current monthly payments both before and after a Chapter 7 bankruptcy. This is called reaffirming your debt. They are in the finance business to make money, not to repossess your property. When the finance company reaffirms the debt, they have the comfort of knowing that you have no other outstanding debts, you cannot file bankruptcy for another eight years, and they can continue to collect the principal plus interest under the original loan agreement.
Rebuild Your Credit
Although bankruptcy can remain on your credit report for up to 10 years, you can start reestablishing your credit immediately after your bankruptcy has been discharged.
Many lenders determine whether or not to lend you money, or extend you credit, by examining your debt to income ratio; how much outstanding debt you have compared to your income. Remember that the reason that your credit is poor right now is because you have so much outstanding debt. Ask yourself, who would you rather loan money to; the person who has $15,000 in credit card debt and could file a bankruptcy at any time, or the person who has already filed bankruptcy, has no remaining debt, and could not file another bankruptcy for another eight years.
Many people are able to purchase and finance a vehicle the day they receive their bankruptcy discharge. Often times you will end up paying a percentage point or two higher than a person with excellent credit, but then how low of an interest rate would you be able to get in your present situation? You should be able to finance a home within two years after receiving a bankruptcy discharge, as long as you can provide a minimum down payment and show the ability to make the monthly mortgage payment. Many consumer debtors receive credit card solicitations within months of receiving a bankruptcy discharge.
Contact Us Now to Schedule a Free Consultation to Help You with a FRESH START!